Ultratech Cement's middle east subsidiary - UCMEIL - has acquired additional 25 percent stake in UAE-based Ras Al Khaimah Company for White Cement (RAKWCT), taking the stake in the company to 54.39 percent, making it a subsidiary.
The company informed exchanges through an exchange filing about the share acquisition, for which Baker McKenzie acted as legal adviser and Abu Dhabi Commercial Bank acted as the sole manager for the transaction.
As recently as in April, UltraTech had announced UCMEIL's plans to invest and acquire 29.39 percent of equity shares of RAKWCT, which is a listed company on the Abu Dhabi stock exchange.
Shares of Ultratech were down by 0.58 percent on July 10, but higher by 11 percent on a YTD basis. In the last one year, the shares are higher by 40 percent.
UltraTech, led by Kumar Mangalam Birla, is reportedly in advanced talks to acquire Orient Cement (OCL) from his uncle CK Birla, restarting talks amid intense consolidation efforts in the sector.
Just two weeks ago, UltraTech had acquired a 23 percent stake in loss-making southern cement major India Cement for Rs 1,885 crore.
KM Birla has already announced plans to ramp up UltraTech's capacity by up to 200 million tonnes per annum (mtpa) over the next three to four years.
A consolidation play is underway in India's cement sector with leading player UltraTech making all efforts to counter Adani Group's attempts to ramp up scale and operational efficiencies. A recent Jefferies note said that the all-India share of top five cement companies in India has risen from 46 per cent of total capacity in FY15 to 54 per cent in FY24. The share of the top two players is likely to increase at a much faster pace.
Recently, Adani group too had announced the acquisition of Penna Cements for over Rs 10,000 crore, adding 10 million tonnes per annum capacity to its portfolio. Last year, Adani Group had also acquired a controlling stake in Sanghi Cements.
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